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Business Wire 19-Sep-2023 1:11 PM
Glancy Prongay & Murray LLP ("GPM"), a leading national shareholder rights law firm, announces that a class action lawsuit has been filed on behalf of investors who purchased or otherwise acquired PacWest Bancorp ("PacWest" or the "Company") (NASDAQ: PACW, PACWP) securities between February 28, 2022 and May 3, 2023, inclusive (the "Class Period"). PacWest investors have until November 10, 2023 to file a lead plaintiff motion.
If you suffered a loss on your PacWest investments or would like to inquire about potentially pursuing claims to recover your loss under the federal securities laws, you can submit your contact information at www.glancylaw.com/cases/PacWest-Bancorp/. You can also contact Charles H. Linehan, of GPM at 310-201-9150, Toll-Free at 888-773-9224, or via email at firstname.lastname@example.org to learn more about your rights.
On May 3, 2023, Bloomberg published an article reporting that PacWest was "weighing strategic options including a sale" and that "[t]he sector has been under pressure as rising interest rates lowered the value of their longer-term investments while increasing the cost of funding and spurring depositors to move cash into higher-yielding money market funds." Forbes also reported that "[h]igher interest rates intensify the spread of the latest bank failure virus that drives deposits out of vulnerable banks, tanks their stock prices, and ultimately prompts an FDIC-enabled rescue[,]" and "the big loss an acquirer would incur to mark down the value of some PacWest loans makes it unlikely a buyer will emerge for the entire bank." On this news, PacWest's stock price fell $2.84, or 44.2%, to close at $3.59 per share on May 4, 2023, thereby injuring investors.
Then, on May 11, 2023, PacWest disclosed that it had lost a significant percentage of its deposits following the publications of the Bloomberg and Forbes reports. On this news, PacWest's stock price fell $1.38, or 22.8%, to close at $4.68 per share on May 11, 2023.
Then, on July 25, 2023, an announcement was made that PacWest had entered into an agreement to be purchased by Banc of California, Inc. Under the terms of the agreement, PacWest shareholders would receive 0.6569 of a share of Banc of California common stock for each share of PacWest common stock.
The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company's business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) PacWest had understated the impact of interest rate hikes on PWB, a smaller bank with excessive concentration in specific industries; (2) accordingly, the Company had overstated the stability and/or sustainability of its deposit base; (3) as a result, PacWest was exceptionally vulnerable to excessive deposit flows and/or a liquidity crisis; and (4) as a result, Defendants' positive statements about the Company's business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.
If you purchased or otherwise acquired PacWest securities during the Class Period, you may move the Court no later than November 10, 2023 to ask the Court to appoint you as lead plaintiff. To be a member of the Class you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the Class. If you wish to learn more about this action, or if you have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Charles Linehan, Esquire, of GPM, 1925 Century Park East, Suite 2100, Los Angeles California 90067 at 310-201-9150, Toll-Free at 888-773-9224, by email to email@example.com, or visit our website at www.glancylaw.com. If you inquire by email please include your mailing address, telephone number and number of shares purchased.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.